Mattel Inc. Problems and Solutions

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Transcript of Mattel Inc. Problems and Solutions

MATTEL INC. SOCIAL RESPONSIBILITYYou've got problems? We have the solutions.Problem #1Our SolutionProblemsProblem #3Solution #1Solution #2Solution # 3- 21,000,000 of Mattel's toys were recalled for being seen as health hazards

- the ingestion of magnets lead to 1 death and 19 injuries

- the amount of lead in the paint used on Mattel's toys was 180 times the amount allowed by law

- some of Mattel's Eastern subcontractors refuse to adhere to their strict safety/production standards

- with their primary user being children, Mattel must produce safe productsProblem #2SUBCONTRACTOR COMPLICATIONS- During the magnet dilemma, Mattel was eager to pass the blame onto their Chinese subcontractors

- this tarnished Mattel's 2003 UNICEF CorporateResponsibility Award

and replaced it with...- implement an inspection line in which workers will test and examine a number of toys in each batch that is manufactured

- start a training program as well as provide constant reminders to further exemplify

also 2007: recalled several more toys on account of loose magnet piecesBut Why?Both the lead paint and the loose magnet assembly happened over the watch of Mattel's Chinese subcontractorsThe Obvious Solutionthe most obvious solution to Mattel's poor production problem would be to pass a new piece of legislationBUT WAIT!passing legislation poses a significant problem in itself...

TIME CONSTRAINTSDANGEROUS PRODUCTS- the fact that Mattel's products are imported from foreign countries posesa major concern- there is not enough supervision in place in Mattel's subcontractors' institutions"Nearly 97% of all recalled products were foreign made; 81% came from China"- provide enhanced communication totheir subcontractors

1. Position their own U.S. Employees into their hiredforeign subcontracting institutions

2. Condense their supply chain to prevent contamination of their products

3. Pre-approve all production decisions made by suboridinatesWe strongly believe that Mattel must...PASSING THE BLAMEConsumers International 2007

"BAD PRODUCT AWARD"- take onus for the subcontractors' mistakes

- pre-approve all business decisions made outside immediate company

- shift responsibility from subcontractorto Mattel Inc.Good morning!- training- placing U.S. supervisors in foreigncountries- hiring inspectors- purchase of quality supplies- four of the most substantial areaswhere costs will be incurred includes:Costs Incurredcost distributionTo conclude...- the constant recalling of products does not provide a sufficient long term solution to Mattel's overall problemsSO...Mattel must enforce pre-existing policies

and additionally...

Must implement new policies such as:- Mattel's supervision within contractors institution- To have contractors decisions approved by Mattel- To implement limitations on Mattel's supply chain This caused much conflict as to who was at fault for the recalled toysAny Questions?